sebi:Order/BM/UR/2022-23/25016
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under Section 15HA
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
- Reg. 26
Parties
- Navneet Garodia HUF
Holding
The Noticee violated Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades that created artificial volume in illiquid stock options at BSE, and a monetary penalty of Rs 5,00,000 under Section 15HA of the SEBI Act was imposed.
Full text
Adjudication Order in respect of Navneet Garodia HUF in the matter of trading in Illiquid Stock Options at BSE P a g e | 2 of 24 trades in stock options segment of BSE during the IP. Such trades were alleged to be non-genuine in nature and created false or misleading appearance of trading in terms of artificial volumes in stock options and therefore were allegedly manipulative, deceptive in nature. In view of the same, SEBI initiated adjudication proceedings against the Noticee for violation of the provisions of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Adjudication Order in respect of Navneet Garodia HUF in the matter of trading in Illiquid Stock Options at BSE P a g e | 3 of 24 in which the Noticee allegedly executed non genuine trades during the I.P, is as follows:
Adjudication Order in respect of Navneet Garodia HUF in the matter of trading in Illiquid Stock Options at BSE P a g e | 4 of 24 generated by the Noticee in the above contract to the total volume from the market in said contract was 5.75%. Therefore, the Noticee allegedly generated artificial volume in the above contract.
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Source: SecMarx — sebi:Order/BM/UR/2022-23/25016. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.